NVIDIA (NVDA) Sees 3% Decline Amid Tech Stock Selloff
Shares in Nvidia (NVDA) are down 3% on Tuesday as the tech stock sector continues its recent selloff that began earlier this month. NVIDIA faces downward pressure as global markets decline, and the inflation battle in the US rages on, per the latest CPI report. Additionally, the AI boom that NVDA previously led is now packed with competition, leading to a stall in the stock’s surge over the last two years.Investors shifted to risk-off mode, selling this year’s market leaders after a hawkish Federal Reserve signaled last week that inflation remains too high. The overall Technology sector (XLK) led the declines, dragging the Nasdaq Composite (^IXIC) lower and extending its losses for a second consecutive session. Technology has been the best-performing sector year to date, sending the major averages to all-time highs in recent weeks amid a boom in AI infrastructure investments. However, the Fed’s latest interest rate hold has tech stocks concerned.While Nvidia stock has surged over 900% in the last five years, that growth has stalled in 2026. NVDA is up 8% YTD, which is far below other leading chip stocks like Micron and AMD. The AI stock price surge comes from the high demand for AI chips, a market that Nvidia previously dominated. However, other semiconductor manufacturers have gained ground, slimming the gap between Nvidia and its competitors while lowering the reliance on Nvidia’s chips. Further, the tech sector, including NVIDIA, is under pressure from a broader market sell-off, with concerns about debt-funded expansions and profitability impacting investor sentiment.NVIDIA stock opened Wednesday’s trading bell at $207 but fell to $200 midday. The leading GPU maker is down nearly 7% over the past month after falling from a high of $224. Despite the recent decline, there are still bulls across the Street who believe NVDA is bound to rally. Most recently, investment banking firm Oppenheimer gave Nvidia stock a buy rating. The firm predicts that NVDA is set to deliver double-digit gains for investors, suggesting a solid rebound is imminent. Rick Schafer, the Semiconductor Equity Analyst at Oppenheimer, wrote in a note to clients that Nvidia stock could reach a high of $265. That’s a profit of close to $58 per share if traders take an entry position today
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